Industry Value Chain

The impact of Northvoltʼs Cuberg acquisition has been difficult to assess due to lack of purchase price disclosure until now:

Purchase price (“Cash consideration paidˮ) was USD$11.2 million cash, USD$14.8 million including debt assumption (“Forgiven notesˮ) of USD$3.6 million.

Equity (“Shares issued, at fair valueˮ) and earn-out Earn-out paymentˮ) are non-cash considerations.

Annualized burn rate of USD$6.9 million for 2021 with a headcount of 56.

Total cash losses to Northvolt from the Cuberg acquisition estimated to be USD$78 million from 2021 to 2024 when it was shut down months prior to the bankruptcy announcement.

Cuberg failed to deliver a viable commercial product that could have been a category leader; Cuberg failed to deliver on the promise of ‘drop-inʼ li-metal production lines for existing facilities and equipment; Cuberg failed to deliver on its advanced R&D initiative to Northvoltʼs broader operations

Cuberg could have played a vital role in Northvoltʼs operational success but was an early casualty leading up to bankruptcy. Sources: Northvolt sustainability reports 2022, and 2023, and PitchBook. Exchange rate on March 10, 2021 1 SEK 0.11791 USD

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